OPENING CALLS:
| Class III Milk Futures: | 3 to 5 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | Steady to 2 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 1 to 3 Higher |
MILK:
Class III milk futures have had an impressive price rally over the past two weeks. This moved the May contract above $18.00, where it had not been for a month. Traders remain cautious as the current fundamentals do not suggest continued strength. Milk production is increasing with cow numbers higher than 2024. Manufacturing plants are increasing production due to higher milk receipts. Demand is expected to improve seasonally. However, higher prices for many food items due to tariffs may impact the amount of dairy products consumers purchase.
CHEESE:
Cheese prices continue to show unexpected strength. The increasing price has brought more buyers into the spot market, which continues to push prices higher. There will be a level at which most of the buying interest will be satisfied, and a threshold will be reached.
BUTTER:
The butter price is expected to remain in a sideways range as supply is readily available for demand, and butter production remains strong. Churns have sufficient cream available, keeping them running on full schedules. Butter inventory continues to increase.
